Yen Hits 8-Month High

by
DailyFX Research Team

Tokyo shares hit a six-week closing low Thursday, as continued yen strength
caused investors to sell shares of Japan’s leading exporters. The
benchmark Nikkei 225 average closed down 0.5 percent to 16,862.14, while the
broader Topix index fell 0.8 percent to 1,711.31. Shares of Toyota, the
world’s most profitable carmaker, fell 2.1 percent to Y6,540, despite the fact
that the carmaker reported on Wednesday its fourth straight year of record net
income and sales. Other major exporters also lost ground. Sony fell 1.6
percent to Y5,450 and Canon fell 0.5 percent to Y8,500. Shares of several
Japanese stocks that were added to the Morgan Stanley Capital International
index rose. In total, 21 new Japanese stocks joined the MSCI Barra index,
which is tracked by funds as a gauge of portfolio performance. Many funds mirror
the changes made to the MSCI indices by buying stocks that have been added and
selling those that are dropped. Shares of two new names were particular strong
on Thursday, as Hanshin Electric Railway was up 3.7 percent to Y1,025 and
Haseko, the construction company, rose 2 percent to Y456. Shares of Don
Quijote, the discount retailer, fell 7.8 percent to Y8,930. Credit Suisse
on Wednesday lowered its earnings estimates for the company in the current
business year and cut its target price on the stock to Y9,200 from Y9,400 after
recent price gains.

Japanese Government Bonds yields hovered at 1.950% as prices came in at
100.412.

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